The public blockchain is the model of Bitcoin, Ethereum and Litecoin and is essentially considered the original distributed ledger structure. The public blockchain network is totally immutable. But what does that mean? Well, it means that once a block enters the chain, there is no way to change or delete it. Thus, it makes sure that no one can simply alter a certain block and make a profit from others.
There are some disadvantages to a public blockchain. The main one is the large energy consumption that is necessary to keep the public ledger distributed. Other issues include lack of complete privacy and anonymity. This can lead to weaker security of the network and the participant's identity.
Along with genuine contributors, participants can sometimes also include fraudulent members who may be involved in malicious activities such as hacking, token theft, and network clogging. A public blockchain is a fully transparent ledger. Because it is decentralized, information is encrypted and stored on multiple devices. That makes it almost impossible to hack into a public blockchain.
The more members a blockchain has, the more secure it is. In the most real sense, a private blockchain is not decentralized and is a distributed ledger that functions as a closed, secure database based on cryptography concepts. This allows participants the ability to perform specific functions, such as reading, accessing, and writing information to blockchains. The most common use case for public blockchains is mining and exchanging cryptocurrencies such as Bitcoin.
Transactions and records on a hybrid blockchain are generally not made public, but can be verified when necessary, for example, by allowing access via a smart contract. To better understand each of them, let's separately explore public, private, and authorized blockchains and their key features. Since authorized blockchains are not open to the public, they are usually much “lighter” than public blockchains, meaning that there is much less on-chain data clogging the network. Basically, a consortium blockchain is a private blockchain with limited access to a particular group, eliminating the risks that come with a single entity controlling the network on a private blockchain.
Open infrastructures give everyone access to ongoing activities on the blockchain, making the network autonomous. The three main types of blockchain are implementations of the same technology, developed to solve different problems, and each has its advantages and disadvantages. Private blockchains are managed by a central authority that can easily implement changes and features without the need for community voting, as is the case with public chains. Public blockchains are completely decentralized, meaning that no central party is in charge of the network or has the power to override the distributed ledger.
There is also a third category of blockchain infrastructure, known as permissioned blockchain or consortium blockchain. However, it can be a bit problematic when you try to incorporate a public blockchain network with the enterprise blockchain process. Anyone can read, write and audit ongoing activities on the public blockchain network, helping a public blockchain maintain its self-governing nature. The best part about public blockchain companies is that they make sure that all participants have equal rights no matter what.
Businesses can use a hybrid blockchain to run systems privately, but display certain information, such as listings, to the public. .